Oracle CEO's Lack of No. 2 Prompts Investor Concern (Update3)
By Ashley Gross
quote.bloomberg.com
Redwood City, California, March 14 (Bloomberg) -- Oracle Corp. Chief Executive Larry Ellison drew laughter at a December conference when he said he doesn't like a strong No. 2 who gets ``blinded by the limelight,'' a dig at former President Ray Lane.
Now, after Oracle missed earnings forecasts in four of the past five quarters, investors aren't amused.
The departures of Lane, who left in 2000, and Executive Vice President Gary Bloom, who exited five months later, have left the world's largest database-software maker short of management at a time when Ellison is in the office less as he pursues one of his many hobbies, investors said. His latest endeavor: the America's Cup, sailing's most prestigious prize.
``The biggest problem they have is the lack of management depth,'' said Craig Stone, an analyst at Kayne Anderson Rudnick Investment Management, which oversees $8 billion and holds 2 million Oracle shares. ``It scares us to death that Ray Lane has left. Nobody seems to be able to stay around.''
Oracle today said net income in the quarter ended Feb. 28 fell to $508 million, or 9 cents a share, from $582.7 million, or 10 cents, a year earlier. Sales fell to $2.23 billion, less than analysts' average forecast of $2.42 million, according to Thomson Financial/First Call. |
